Scrap prices in Turkey are on a rising trend, in line with expectations and our previous reports. After trending sideways for a long time, scrap prices in the Turkish domestic market have finally increased following the increases in import prices.
Due to the expectation of a hike in scrap prices in the local US market for early December, not many scrap export offers were heard from US scrap suppliers last week; however, ex-US HMS I/II 80:20 scrap offers to Turkey this week are predicted to stand at $410/mt CFR or slightly higher.
Ex-Europe HMS I/II 70:30 scrap offers to Turkey stand at about $400/mt CFR. Due to the holiday season in December, scrap collection activities in Europe are expected to slow down, resulting in reduced scrap supplies.
The ex-Black Sea A3 scrap transaction price has increased up to $397/mt CFR Marmara. This week, offers are heard in the price range of $400-405/mt CFR.
While no scrap import offers to Turkey have been heard this week, Turkish producers are active in the market. The strength of the Turkish domestic rebar market and of Turkey's steel billet export markets gives producers a sense of security as regards scrap booking activity. Some scrap transactions are expected to be concluded this week.